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Microsoft finally clarified how the new Xbox One will handle used games.

The company will allow developers to choose whether or not they want to allow customers to be able to trade their games into participating retailers.

"We designed Xbox One so game publishers can enable you to trade in your games at participating retailers. Microsoft does not charge a platform fee to retailers, publishers, or consumers for enabling transfer of these games," said the company.

Friends and family will also be able to play your games with some stipulations.

"Your friends and family, your guests and acquaintances get unlimited access to all of your games. Anyone can play your games on your console- regardless of whether you are logged in or their relationship to you," said Microsoft.

"Xbox One is designed so game publishers can enable you to give your disc-based games to your friends. There are no fees charged as part of these transfers," they added. "There are two requirements: you can only give them to people who have been on your friends list for at least 30 days and each game can only be given once."

Xbox One allows users to gift games to friends, but does not allow borrowing. Loaning or renting games also will not be available at launch, but the company is currently exploring the possibilities with its partners.

The console does let anyone play your games on your system, though. Up to ten friends or family members will be able to log in to one console and play.